FUNDING OF MICRO SMALL AND MEDIUM ENTERPRISES SECTOR UNDER ‘MSME FUNDING PROGRAM’ OF THE SAARC DEVELOPMENT FUND (SDF)
- A number of initiatives are regularly being launched to strengthen the vital sector of MSMEs in the SAARC economies.
- The SDF has been looking for co-funding opportunities in SAARC Member States under its MSME Funding Program.
- The Program seeks to bolster the efforts of the Member States in supporting their MSMEs. It will be covered under Economic and Infrastructure Windows of the SDF.
- The Board of Directors has recently cleared the concept of MSME funding Program of the SDF;
- SDF’s parameters of the Program are:
- Objectives: To encourage and boost trade among SAARC Member States by providing resource support by way of Line of Credit to Financial Intermediaries (FIs) in SAARC Member States to lend to MSME units in their respective countries, exporting to other SAARC Member States, at a concessional rate of interest.
- Type of FIs to be covered: FIs in SAARC Member States predominantly engaged in funding MSMEs or any other specialized FI/Bank. The institution shall be recommended by the Member State meeting minimum eligibility criteria indicated in the Scheme.
- Currency of the Line of Credit: in US Dollar.
- Maximum quantum of Line of Credit per FY: USD 10 million.
- The extension of resource support through line of credit by Multilateral and Bilateral financial institutions to domestic financial institutions in recipient countries is an established practice. Individual product lines are designed need-based depending on country requirements and priority areas to be targeted.
For more information, contact the CEO, SDF Secretariat at : 3rd Floor, BDBL Building, Norzin Lam, Thimphu 11001, Bhutan; Tel.# +975-2-321152/53; Fax # +975-2-321150/321203; Email: email@example.com; or firstname.lastname@example.org